An online loan app in Kerala is under investigation for extortion after a student's tragic death, raising concerns about predatory lending practices and harassment.
A case of extortion was booked against an online loan app on Friday for allegedly mentally harassing and intimidating a first-year BDS student, Nithin Raj R L, leading to his death, police said.
The app adopted intimidation to recover the money disbursed to him as part of a loan, they added.
The case was registered at Chakkarakkallu police station here based on a complaint filed by the cyber cell of the police on April 16, nearly a week after the student's death.
The FIR was registered against the app under section 308 (extortion) of the Bharatiya Nyaya Sanhita, and relevant provisions of the Kerala Money Lenders Act and the Kerala Prohibition of Charging Exorbitant Interest Act.
Extortion provisions were invoked against the loan app, amid complaints against some of the faculty members for harassing the student based on his caste and complexion.
According to the FIR, a loan to the tune of Rs 15,000 was disbursed to Raj, in January via the app at an interest rate of 36 per cent in violation of the laws.
Subsequently, from April 9 onwards, those operating the app began repeatedly calling the student to recover the loan amount and allegedly mentally harassed and intimidated him, according to the FIR.
Raj (22), a first-year BDS student of a private dental college in Anjarakandy here, was found critically injured after falling from a building on April 10 and later succumbed to his injuries.
Police have already registered a case against two faculty members, Dental Anatomy Department Head Dr M K Ram and Associate Professor K T Dr Sangeetha Nambiar, for abetment of suicide and under provisions of the SC/ST (Prevention of Atrocities) Act, following allegations that Raj was harassed over his caste and complexion.
On Thursday, the college management dismissed Dr Ram following student protests inside the college.
Apart from the police cases, the Kerala SC/ST Commission, the Kerala State Human Rights Commission, the Kerala State Youth Commission, the Kerala University of Health Sciences and the Medical Education Department are conducting separate inquiries.
Dr Ram and Dr Sangeetha, who are accused in the police case, are still untraced.